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On August 10, 2019, the BSV price reached a low of ₿0.0117. An upward move ensued and BSV reached a high of ₿0.0145 on August 14. After a brief decrease, the price reached a similar high on August 29. It has been decreasing since.
How long will the decrease continue for BSV? Keep reading below if you want to find out.
A look at the daily time-frame shows that BSV has been retracing after the upward move that began in May.
We can see a strong support area at ₿0.011.
Once the price reached it on July 15, it began an upward move.
At the time of writing, BSV was trading slightly above it.
A closer look at price movement shows that BSV has been trading inside a symmetrical triangle since June 28.
Additionally, the price is quickly approaching the projected end of the pattern, at which point a decisive move is likely to occur.
Since the symmetrical triangle is considered a neutral pattern, we need to take a look at technical indicators to decide on the direction of the move.
When we incorporate daily moving averages (MA) into the analysis, we can see that BSV is facing close resistance from both the 10- and 20-day MAs.
Additionally, they rejected a bullish cross on September 1, before decreasing towards the support line.
The next attempt at beginning an upward move ended when the price touched the resistance line of the triangle and created a bearish candle with a long upper wick.
The movement inside the triangle has been characterized by long upper wicks, indicating that there is strong selling pressure.
This makes us believe that BSV will eventually break down from the triangle and reach the support area outlined in the first section.
Let’s take a look at the short-term to see when that might occur.
A look at the 4-hour time-frame shows that BSV has possibly created an inverse cup and handle.
The pattern is considered bearish, making a price breakdown more likely.
If the price were to break down, it is likely that it would reach the support area at ₿0.011.
The BSV price has been trading inside a symmetrical triangle.
According to our analysis, the price is likely to break down from the triangle and reach the support area at ₿0.011.
For trading purposes, while we believe that BSV will decrease, its current position does not allow for the initiation of a profitable trade.
We would consider BSV a sell at prices closer to ₿0.0135.
Do you think BSV will break down from the triangle? Let us know in the comments below.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Images are courtesy of Shutterstock, TradingView.
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